educational

International Marketing: 1 Should You Enter Emerging Markets?

Should you market internationally? The United Kingdom, United States of America, Australia, South Africa, Zimbabwe, India, and Hong Kong are all representatives of a successful policy of British imperialism. With the spoils of this extension of influence came much conflict - think of Ghandi when considering India, remember 18th century battles with France over land an ocean away in what would later be called Canada, and consider war with Germany when the latter expanded a navy in the early 1900s. International domination is indeed a risky endeavor, but the rewards can be staggering.

Successfully establishing a first mover advantage can open new worlds of opportunity, as can leveraging a geographic competitive advantage. Americans reign over the Internet - 60% of our nation's 280 million people are online (as are nearly half of Canada's 40 million), and U.S.-based OEM providers such as AltaVista, Google, Lycos, Microsoft, and Yahoo! have already captured key market share internationally. However, as growth rates in the American Internet user base have regressed to single-digit numbers, North America is becoming less critical when considering online audience reach. After all, "The US is still the largest single Internet universe, but with a total of 371 million people with Internet access across 21 countries, the US Internet population accounts for only 43 percent of the world Internet audience. This is a clear indication that the Internet must soon shift from a largely American medium to a truly global, multi-lingual medium to accommodate this significant global audience."2

Consider this fact-filled spiel of international trivia:

* Diamonds primarily from South Africa continue to sustain the 60-65% diamond market share ($50 billion) enjoyed by the British/Dutch De Beers corporation.5

* A large amount of the British staple tea comes from India, as do textiles and access to more than one billion people for commercial markets.

* Any English-speaking tourist will find friendly street names and familiar businesses in Hong Kong, China; Victoria Peak and Western Market are top attractions, and Hong Kong's nearly 7 million residents are the second most-wired population in the world (behind the United States) when comparing modem penetration rates.3

* Although originally a far-fetched outpost for dumping British criminals (nearly half of the original colonists were exiled felons), Australia's nearly 19 million people now offer a highly urbanized market, and the traditionally encumbersome 8,000 mile distance gap between the U.S. and 'down under' isn't so costly when selling information over an inexpensive medium like the Internet.

If you're an American firm, utilize the incredible diplomatic framework already installed by our British and American business ancestors. Think about the 30,000 U.S. soldiers currently stationed in South Korea. 50 years of heavy-handed American influence has opened an underdeveloped market. More than half of Koreans use a broadband connection when surfing the Internet.1 That's five times the rate for U.S. surfers! And don't forget that the Republic of Korea's 46 million people are coming online faster than the dying U.S. growth spree. Koreans spend nearly twice as many hours on the Internet as the average U.S. user, too.2 But beware: when exporting products to South Korea, you may experience border difficulties. This is what happened to one marketing firm: "One Korean translated our site and marketed it for a couple of weeks. He sold more than $10,000 of our product, but the customs officials seized and destroyed the shipment." ...when it comes to the Internet, Europe is just a couple years behind.

And what about the European continent? The Euro has made recent inroads on the supremacy of the American dollar, leaving no question of the importance of a united Europe to international trade. However, when it comes to the Internet, Europe is just a couple years behind. Economic powerhouse Germany is also behind when it comes to Internet penetration - only 27% of the Deutschland's populated actively surfs the Web compared to 60% in the United States.3 France is even more remedial than Germany - 18% of the population is online, and only 2% have broadband access.

So why move in to these markets? France's socialist government "has defined plans to make sure that all the country’s population has access to high-speed internet links within five years. The project strategy, whose details are yet to be unveiled, is aimed at allowing local communities to make use of cheap loans worth about $1.3bn (E1.53bn) to construct high-speed web connections."4 Will Internet usage in France take off like it did in South Korea after implementing an "if they build, they will come" philosophy? Only time will tell, but expect the gap between the U.S. and Europe to shrink considerably over the next several years.

This was just the first in an on-going series about international marketing. Future pieces will expand upon the depth of international markets, address payment collection problems, and discuss international business risk reduction strategy. Expect new installments each week!

David Wolf has worked in the adult industry for three years. He specializes in international marketing strategy and web spider creation. David holds a BS in Business Information Systems, is currently pursuing his MS in Strategic Intelligence, and can be reached for follow-up inquiries at Wolf@adultwebmasterconsultants.com or through www.adultwebmasterconsultants.com.

1 https://kr.netvalue.com/presse_hk/index_frame.htm?fichier=cp0022.htm
2 https://www.eratings.com/news/2001/20010308.htm
3 https://www.cable-modems.org/articles/market/
4 https://www.tvmeetstheweb.com/news/shownews.asp?ArticleID=4439
5 https://www.businessweek.com/bwdaily/dnflash/dec2001/nf2001125_2347.htm

Copyright © 2024 Adnet Media. All Rights Reserved. XBIZ is a trademark of Adnet Media.
Reproduction in whole or in part in any form or medium without express written permission is prohibited.

More Articles

opinion

Navigating Age-Related Regulations in Europe

Age verification measures are rapidly gaining momentum across Europe, with regulators stepping up efforts to protect children online. Recently, the U.K.’s communications regulator, Ofcom, updated its timeline for implementing the Online Safety Act, while France’s ARCOM has released technical guidance detailing age verification standards.

Gavin Worrall ·
opinion

Why Cyber Insurance Is Crucial for Adult Businesses

From streaming services and interactive platforms to ecommerce and virtual reality experiences, the adult industry has long stood at the forefront of online innovation. However, the same technology-forward approach that has enabled adult businesses to deliver unique and personalized content to consumers worldwide also exposes them to myriad risks.

Corey D. Silverstein ·
opinion

Best Practices for Payment Gateway Security

Securing digital payment transactions is critical for all businesses, but especially those in high-risk industries. Payment gateways are a core component of the digital payment ecosystem, and therefore must follow best practices to keep customer data safe.

Jonathan Corona ·
opinion

Ready for New Visa Acquirer Changes?

Next spring, Visa will roll out the U.S. version of its new Visa Acquirer Monitoring Program (VAMP), which goes into effect April 1, 2025. This follows Visa Europe, which rolled out VAMP back in June. VAMP charts a new path for acquirers to manage fraud and chargeback ratios.

Cathy Beardsley ·
opinion

How to Halt Hackers as Fraud Attacks Rise

For hackers, it’s often a game of trial and error. Bad actors will perform enumeration and account testing, repeating the same test on a system to look for vulnerabilities — and if you are not equipped with the proper tools, your merchant account could be the next target.

Cathy Beardsley ·
profile

VerifyMy Seeks to Provide Frictionless Online Safety, Compliance Solutions

Before founding VerifyMy, Ryan Shaw was simply looking for an age verification solution for his previous business. The ones he found, however, were too expensive, too difficult to integrate with, or failed to take into account the needs of either the businesses implementing them or the end users who would be required to interact with them.

Alejandro Freixes ·
opinion

How Adult Website Operators Can Cash in on the 'Interchange' Class Action

The Payment Card Interchange Fee Settlement resulted from a landmark antitrust lawsuit involving Visa, Mastercard and several major banks. The case centered around the interchange fees charged to merchants for processing credit and debit card transactions. These fees are set by card networks and are paid by merchants to the banks that issue the cards.

Jonathan Corona ·
opinion

It's Time to Rock the Vote and Make Your Voice Heard

When I worked to defeat California’s Proposition 60 in 2016, our opposition campaign was outspent nearly 10 to 1. Nevertheless, our community came together and garnered enough support and awareness to defeat that harmful, misguided piece of proposed legislation — by more than a million votes.

Siouxsie Q ·
opinion

Staying Compliant to Avoid the Takedown Shakedown

Dealing with complaints is an everyday part of doing business — and a crucial one, since not dealing with them properly can haunt your business in multiple ways. Card brand regulations require every merchant doing business online to have in place a complaint process for reporting content that may be illegal or that violates the card brand rules.

Cathy Beardsley ·
profile

WIA Profile: Patricia Ucros

Born in Bogota, Colombia, Ucros graduated from college with a degree in education. She spent three years teaching third grade, which she enjoyed a lot, before heeding her father’s advice and moving to South Florida.

Women In Adult ·
Show More